Question

Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard variable overhead cost per unit is $3.00 per hour. The actual variable factory overhead was $39,000. Determine the variable factory overhead controllable variance.

Answer 1

The variable factory overhead controllable variance is $2,250 favorable.

Step-by-step explanation:

variable factory overhead controllable variance

= standard variable cost - actual variable cost

= $5500-2.5*3 - $39000

= $2,250 favorable

Therefore, The variable factory overhead controllable variance is $2,250 favorable.